The problem with this metagovernment system you reference is that the average person does not adequately understand our legal code well enough. This is the reason America is more of a republic. It was thought that electing "elite" officials who have our interests at heart but more direct knowledge of law would make better law makers.
If you live in state that allows referendums this concept becomes very apparent. I consider myself a well informed, educated individual. I've taken many business law classes and I write my own business contracts yet I still struggle to understand some of the legal code in the New Jersey referendums I've read. Even the dumbed-down translation they provide can be confusing to the average person.